Location: Ft.Worth, TX
Asset Type: Class A multifamily – 80 units
Ownership period: 2014-2017
Return on Equity: 75.4%
Annualized return on Equity: 28.1%
Increase in value: 51.1%
Increase in NOI: 54.1%
Solaris Ranch was the eighth asset acquired as part of the partners’ current portfolio and the third to be sold. The partners intended to hold Solaris Ranch for a 5 year term to fully maximize value. We determined, however, that we would be able to exceed our 5 year sales price within 3 years by nearly 7% given the quality of this property and the value we had added. Through an open marketing effort we obtained an offer from a highly motivated buyer. The result was a net return to our investors of 75.4% on equity invested in less than 3 years – the equivalent of 28.1% a year and an IRR of 24.2%.